ZEROS INC.
The Zeros Technology
As noted by Dr. Allan Jones of Texas A&M University, the Zero-Emission Energy Reduction Oxidation System (“Zeros”) can completely oxidize, destroy, and thereby permit RCRA de-listing of PFAS from a wide variety of solid and liquid wastes. This “destruction” is accomplished by using a high- temperature, two phase, oxy fuel process (using pure oxygen as the oxidant) to completely oxidize and destroy PFAS and other organic and hydro-carbon components of a waste stream. The Zeros process for this destruction is protected by six patents. Workable modular systems were built and used in the 1990’s for environmental rapid response and remediation. There are written reports on Zeros from Texas A&M, the Oak Ridge National Laboratory, the State of Texas, and the US Air Force.
The Zeros Technology System:
· Does not have a smokestack,
· Captures CO2 and all other toxic chemicals,
· Has no air or waste emissions,
· Can process all matrices (soil, biosolids, liquid, sludge, and slurry),
· Uses municipal solid waste (MSW) as its fuel source but can use any carbon-based material,
· Can be constructed in-situ or ex-situ,
· Qualifies for various federal and state tax credits, incentives, and abatements.
The Opportunity
Zeros has a working relationship with the Texas Gulf Coast Authority (“GCA”), Chambers County, Texas and various underwriters of municipal bonds, private activity bonds and industrial revenue bonds.
To build one Zeros-PFAS destruction facility at a projected cost of $100 million, the capital structure is proposed as follows:
a) $20 million equity investor for 70% of the equity
b) $10 million equity investor receives 35% of the equity
c) $80 million GCA-Zeros conduit bond offering (10-year tenor, trust indenture, market rate or equivalent offering).
d) The project will earn a significant tax credit (ITC) and a quantity of IRC section 45Q tax credits. The original equity of $20 million is on offer at 70% of the initial plant to be built in Chambers County Texas.
Financial Information
Zeros will build the initial plant to receive, handle and process 500,000 pounds of PFAS contaminated material per day. The service fee is $2.50 per pound, 350 days per year, for the projected revenues from service fees of $437.5 million. This does not include other additional revenue sources such as:
· Tipping fee allocation from Chambers County landfill
· By- product sales
o CO2
o Water
· Processing of leachate and flared natural gas from the Chambers County landfill,
· Carbon credits and other incentives,
· Operating expenses are projected at $50 million, thus allowing a significant EBITDA of $387.5 million.
Use of Funds
The Investor equity would be deployed to engage the necessary engineers, PFAS technical advisors, construction services, insurance coverages, bond counsel, and other staff and managerial personnel. Specific engagements are contemplated with:
Ernst & Young, Greg Matlock, tax credit bond counsel
Barr Engineering, PFAS technical advisors
Tom Boyd, Engineer, design, and construction support
Systems International, design, equipment procurement and construction management services.
Conclusion
PFAS chemicals have been in the US environmental system for over 70 years. The health issues are barely 20 years known but widespread and serious. Contamination sites now number in the tens of thousands (including most major airports and military installations).
Total Destruction of PFAS chemicals is the preferred path forward. To date, only one thermal technology meets the consensus criteria for safe, secure, total destruction: the Zeros Technology System.
Beyond the first plant, there are multiple opportunities in the highly contaminated area between Houston and Beaumont along the Houston ship channel. Zeros plans to become the thermal destruction technology of choice for the destruction of PFAS contaminated industrial wastewater and other matrices in that area.
Overview
PFAS chemicals are a class of organofluorine chemicals that have been manufactured and used for decades. Since PFAS can confer resistance to oil and water and withstand high temperatures, they are used in a variety of applications. For example:
· Teflon
· Carpeting
· Upholstery
· Leather
· Paints
· Paper and Packaging
· Chrome Plating
· Apparel
· Cosmetics
· Floor Wax
· Firefighting Foams
· Sealants
· Electronics
· Oil Recovery
PFAS chemicals have become an increasingly significant environmental and public health concern due to their persistence, dispersion, and inability to naturally degrade. The Environmental Protection Agency (EPA) estimates that 98% of the United States residents have PFAS in their bloodstream. Thousands of drinking water plants and industrial wastewater facilities have PFAS contamination. Moreover, PFAS chemicals are now linked to adverse health effects such as low birth rate, reduced immune responses,
hepatic, reproductive, cardiovascular, and endocrine system effects, and cancer.
These hazards were first brought to light by litigation in the 1990’s; the last three decades have seen increased federal and state regulatory initiatives, accelerated academic and scientific inquiry, fevered research and development activity and ongoing public awareness and education projects.
The White House has established its commitment through the Bipartisan Infrastructure Law and the Inflation Reduction Act wherein billions of dollars have been allocated to identify, measure, assess, and reduce or eliminate the PFAS problem. While there are numerous technologies, systems and processes that have been developed, there is a basic dichotomy of solutions:
1. Separation, segregation, filtration of PFAS, or
2. Total destruction of the PFAS molecule.
Separation leaves the issues of storage, transportation and/or disposition of PFAS